New SKW/ASA Rumor

[BillJBrake]

Just got word on *good* authority that the company will NOT be "grossing" people up, to cover the taxes. Crew members will be responsible for their tax obligations to Vietnam and the US. However, current plan (again this is from a good source, but not in writing yet) is to pay a large amount of the salary in "per diem" so as to negate the tax burden and so you'll end up being responsible for the Vietnamese tax rates (flat or the 35-40% depending on residency work-arounds) and they'll pay out the per diems to effectively keep your base under $91.5k and you will be thanking the FEIE all the way to the bank!

I'm glad to see Scott and Brad are being so thorough in dotting all their i's and making sure this works out to be the deal that it really should be!! (I wouldn't be surprised if take-home pay is in the "make G550 drivers jealous" territory!).

 

[GeekMaster]

Just got word on *good* authority that the company will NOT be "grossing" people up, to cover the taxes. Crew members will be responsible for their tax obligations to Vietnam and the US. However, current plan (again this is from a good source, but not in writing yet) is to pay a large amount of the salary in "per diem" so as to negate the tax burden and so you'll end up being responsible for the Vietnamese tax rates (flat or the 35-40% depending on residency work-arounds) and they'll pay out the per diems to effectively keep your base under $91.5k and you will be thanking the FEIE all the way to the bank!

I'm glad to see Scott and Brad are being so thorough in dotting all their i's and making sure this works out to be the deal that it really should be!! (I wouldn't be surprised if take-home pay is in the "make G550 drivers jealous" territory!).

So if I read what you're saying correctly, then the following would be correct:

Assume the salary was 9000/month USD plus housing.
12 X 9000 = 108,000 USD annually.
Around 91,000 would be paid as per diem. (circumventing Vietnamese tax)
Since that amount is below 91.5, as long as you are outside the U.S. at least 330 days out of the year, it is NOT subject to U.S. tax.
The remaining 17k or so IS subject to Vietnamese tax. Assuming 35% would give a tax load of around 6k give or take.

So the total salary in that scenario would be 108K with a total tax liability of 6K?

Is that correct?

 

[BillJBrake]

Geekmaster,

Close, but more like the other way around.

Using your numbers...

108,000 USD annually,

around 91,000 would be paid as salary, the remaining $17k'ish would be paid at per-diem. So the the 91k would be subject to Vietnamese tax, not the 17k. So assuming 35% your tax load would be ~$32k. So in that scenario $108k with total tax liability of $32k.

I'll have a bit more detailed info on this soon, my sources are working on some stuff today/tomorrow.

 

[GeekMaster]

Geekmaster,

Close, but more like the other way around.

Using your numbers...

108,000 USD annually,

around 91,000 would be paid as salary, the remaining $17k'ish would be paid at per-diem. So the the 91k would be subject to Vietnamese tax, not the 17k. So assuming 35% your tax load would be ~$32k. So in that scenario $108k with total tax liability of $32k.

I'll have a bit more detailed info on this soon, my sources are working on some stuff today/tomorrow.

That's a big tax load.....as big or bigger than the tax load on 108k if it was earned while living and working in the U.S. If they want to attract sufficient numbers of applicants, they will need to at the very least create a situation where the pilot doesn't actually experience financial harm by going.

 

[BillJBrake]

That's a big tax load.....as big or bigger than the tax load on 108k if it was earned while living and working in the U.S. If they want to attract sufficient numbers of applicants, they will need to at the very least create a situation where the pilot doesn't actually experience financial harm by going.

Considering the housing package and return-home benefits that they're grouping in with this, it is still a net win for anyone considering doing it. ~$75k take home is more than (or just about equal) to what any CA at Acey is currently making, and you wouldn't have to take any money out of that to pay for your meals our housing, with the allowances they're putting in the Vietnam package.

 

[GeekMaster]

Considering the housing package and return-home benefits that they're grouping in with this, it is still a net win for anyone considering doing it. ~$75k take home is more than (or just about equal) to what any CA at Acey is currently making, and you wouldn't have to take any money out of that to pay for your meals our housing, with the allowances they're putting in the Vietnam package.

I can see where it would be considered a "net win" for someone who didn't own a home here in the states or someone who would sell their home to go. But for those who do own a home and intend to keep it, the expenses remain the same. I suppose that person could "turn it into" a net win if they were lucky enough to have a very reliable person to rent their home to.

I guess I'll have to wait to see the final package. I am very interested to see if this is a do-able adventure without costing me any financial harm. I'm a relatively senior high block flying 700 guy, so that puts me on the 6 figure level.

Do any of your sources indicate whether it's pilots only? vs. any F/A's or Ground personnel?

 

[JumpersAway]

I can see where it would be considered a "net win" for someone who didn't own a home here in the states or someone who would sell their home to go. But for those who do own a home and intend to keep it, the expenses remain the same. I suppose that person could "turn it into" a net win if they were lucky enough to have a very reliable person to rent their home to.

I guess I'll have to wait to see the final package. I am very interested to see if this is a do-able adventure without costing me any financial harm. I'm a relatively senior high block flying 700 guy, so that puts me on the 6 figure level.

Do any of your sources indicate whether it's pilots only? vs. any F/A's or Ground personnel?

No F/A's........not sure about maintenance or other support personel. The F/A's will be Vietnamese nationals- none of ours speak the language or look the part : )

I wonder if we will have dispatchers, or it it will be done old school..........Still looking foward to getting the info and wanting to go.............

 

[LazyLightnin']

The F/A's would probably have to speak Vietnamese... I doubt Ebonics would qualify.

 

[zawillif]

From what I hear it's only captains. Fos and fas will be nationals.

 

[ASA_Aviator]

From what I hear it's only captains. Fos and fas will be nationals.

Incorrect. FAs will be nationals.

As far as the taxes, it may be that the per diem thing is correct, with the net effect being that taxes are negated by the company.